The Cost of Debt,r_d,is Always Less Than R_s,so R_d(1 −

question 83

True/False

The cost of debt,r_d,is always less than r_s,so r_d(1 − T)will certainly be less than r_s.Therefore,since a firm cannot be 100% debt financed,the weighted average cost of capital will always be greater than r_d(1 − T).

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